How is it possible to say there is no money in the bank - page 7.

TimeTeller

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Quote from: DeathAngel on January 04, 2024, 05:12:15 PM

A bank can go bust due to loads of different reasons. Fractional reserve banking is a major one of them. Fractional reserve banking allows banks to lend out a portion of the deposits they receive keeping only a fraction as reserves. If depositors lose confidence & withdraw more money than the bank can cover it can lead to a bank run & potential insolvency. Other factors such as bad loans, mismanagement, economic downturns or external shocks can also contribute to a bank's failure. A combination of factors can undermine a bank's stability leading to its collapse.

There are several circumstances that a bank can indeed be bankrupt and those you mentioned are among them.
If the management is not proactive in addressing their problems, they can indeed collapse in no time.
It all boils down to the management here. It is also the reason how they can earn more if the management is very strategic on how to earn profits from their funds.
If their investments are quite safe and secure, it would be hard for them to fail. But if unfortunately, most of their investments are failure, then we already know the domino effect on its vaults.

macson

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Quote from: Bright0515 on January 03, 2024, 05:34:59 PM

In this recent economy we have witnessed some hardships financially and many other aspects now coming to say there is no money in the bank how possible is that can you imagine saying the river has no water? We are in the new year now huge sum of money have been signed by the government for projects but in a very short time they suddenly come out to say the country is running out of funds the country needs to borrow money from other countries the money signed in your own country where are they what is the duty of the bank in your country imagine a bank giving you the maximum amount you as a the account owner can withdraw from your own account sometimes I just feel like the bank isn't a safe place any more.
Come to think of it what if someone has a very serious score to settle for example someone who has health issue and needs money urgently then you go to the bank and they tell you there is no money in the bank for now so where does the bank want people to save their money if the bank at some times can be this disappointing should we go back to the system as at the old days where you bury your money or put them in your ceiling for safety please it's no joke anymore banks should try to be reliable as to gain trust from customers because many people are not comfortable with this system

banks don't have their own money, banks only spin around customers' money and make a profit from it all, the bad thing about banks is that they will easily give out money to priority customers, whether it's the loans they apply for and I see that will be difficult to get rid of, if you are not a priority customer then don't expect the money in the bank, it will be easy for you to get out, they will say there are lots of procedures to go through and that is what makes banks really annoying. but for now we can't do anything, transactions using cryptocurrencies are not yet permitted, all we can do is try to live a stable life and be on guard for when we run out of money faster.

DeathAngel

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A bank can go bust due to loads of different reasons. Fractional reserve banking is a major one of them. Fractional reserve banking allows banks to lend out a portion of the deposits they receive keeping only a fraction as reserves. If depositors lose confidence & withdraw more money than the bank can cover it can lead to a bank run & potential insolvency. Other factors such as bad loans, mismanagement, economic downturns or external shocks can also contribute to a bank's failure. A combination of factors can undermine a bank's stability leading to its collapse.

Sanugarid

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Quote from: Bright0515 on January 03, 2024, 05:34:59 PM

In this recent economy we have witnessed some hardships financially and many other aspects now coming to say there is no money in the bank how possible is that can you imagine saying the river has no water? We are in the new year now huge sum of money have been signed by the government for projects but in a very short time they suddenly come out to say the country is running out of funds the country needs to borrow money from other countries the money signed in your own country where are they what is the duty of the bank in your country imagine a bank giving you the maximum amount you as a the account owner can withdraw from your own account sometimes I just feel like the bank isn't a safe place any more.
Come to think of it what if someone has a very serious score to settle for example someone who has health issue and needs money urgently then you go to the bank and they tell you there is no money in the bank for now so where does the bank want people to save their money if the bank at some times can be this disappointing should we go back to the system as at the old days where you bury your money or put them in your ceiling for safety please it's no joke anymore banks should try to be reliable as to gain trust from customers because many people are not comfortable with this system

I agree, it's still better to put it in your bank account than in your house because of incidents like this. We know where your money went if the bank can't give your money right away, it will be given right away in 1 or 2 days and the hospital bills can also wait to be paid.

Fortify

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Quote from: Bright0515 on January 03, 2024, 05:34:59 PM

In this recent economy we have witnessed some hardships financially and many other aspects now coming to say there is no money in the bank how possible is that can you imagine saying the river has no water? We are in the new year now huge sum of money have been signed by the government for projects but in a very short time they suddenly come out to say the country is running out of funds the country needs to borrow money from other countries the money signed in your own country where are they what is the duty of the bank in your country imagine a bank giving you the maximum amount you as a the account owner can withdraw from your own account sometimes I just feel like the bank isn't a safe place any more.
Come to think of it what if someone has a very serious score to settle for example someone who has health issue and needs money urgently then you go to the bank and they tell you there is no money in the bank for now so where does the bank want people to save their money if the bank at some times can be this disappointing should we go back to the system as at the old days where you bury your money or put them in your ceiling for safety please it's no joke anymore banks should try to be reliable as to gain trust from customers because many people are not comfortable with this system

You seem absolutely clueless about finances which is probably why no bank would ever dream of lending money to you. There is no financial crisis taking place right now, at least not on a global scale, and money markets are working in a pretty fluid way. High interest rates in many countries threw the banks off for a bit, but things have gotten a lot better over the last few months. What banks are not in a rush to do, is hand out money to freeloaders or people that have no real plans other than spending. Maybe you should be more specific about where you think there is a shortage of money, because in my country I see prosperity all around and unemployment reaching record lows.

uneng

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That is why I don't like holding large sums of fiat currency. Besides the constant devaluation through inflation, there is also the seizure risk. It has already happened in my country once in 90's, and it can surely happen futurely again as well, because politicians and governments aren't to be trusted. They tell you everything you want to hear during the polls, but once they reach in power, they do everything exactly the opposite they promised to do.

And if they have to sacrifice someone in the process, you can be assured it's going to be you, average citizen, who don't own any influence and power inside your local society. Meanwhile, they preserve the interests of the big players. For that reason, always you accumulate some considerable sum of money, invest it into assets, precious metals, jewelry, lands, real estate... Something you know it's going to maintain its value or increase it within time.

Fiat currencies are garbage, and their only important use for us is on short term to keep our daily life going on through paying expenses. Fiat currency has to be fluid in our hands, do not hold it for too long.

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I'm not sure which specific country you're asking about here. But there's a few reasons why a bank might not have enough money in the vault to give people if they all ask for their dough at the same time. For one thing, banks lend out way more than they actually have sitting in deposits. Its just how they operate - it lets them give people loans and stuff. But if everyone rushes to drain their accounts all at once, yikes... the bank's screwed.

Another thing is banks take the money people deposit and invest it in other things like stocks or bonds to try to make more profit. That's all fine and dandy until people want their money back and the bank doesn't have it handy. Oops. So yeah, a couple reasons why banks might come up short if people make a run on them.

puloweh555

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Quote from: |MINER| on January 04, 2024, 09:08:26 AM

Such decline of banks is a type of economic decline. It is very frustrating that our money is not safe in the bank. But a few days ago we trusted these banks blindly. If I put money in the bank, I thought my money was safe, but the bank itself is losing trust. It is very painful and worrying. But I would say keeping money at home is not at all safe because there is a risk of life in it. Money is not more important than life. If you can't trust the bank, you can invest your savings in Bitcoin. It is safe and profitable. Although it is a long-term process, it is safe for your money.

Actually, the purpose of saving in the bank is for emergency needs that are needed quickly. because it can be taken at any time, but to save large amounts, don't go to the bank. Because at the bank, taking out large amounts of money is always complicated, you have to wait a few days before you get the money because our money will of course be turned over again by the bank. so when we take large amounts, often there is no money. But when we save large amounts of money in the bank, everything becomes easier. That's why I don't trust banks.

In my opinion, to save money, it is better to invest in Bitcoin or shares, even though the process of disbursing funds is not on the same day we need it, but this is good for our financial future. So you still have to have funds saved in the bank, and make long-term investments such as bitcoin, gold and shares.

Ben Barubal

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Well, literally speaking, there is no money in the bank. That's why the bank owners only make money from the money that their customers trust them with; in short, the money that the banks lend comes from the money of their clients. who hides money from them. The interest they impose on borrowers is large, but the percentage they only give to their clients is only a small percentage.

That's why most crypto enthusiasts prefer to put money in cryptocurrency rather than in the bank because they will only get a small interest here, while crypto is not like that.

AYOBA

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The issue with Nigerian banks is that after you deposit your money with them, you may not always need that money and receive it soon since they may run out of cash. Imagine me with my own money that I couldn't obtain at the time I want to spend it, f it not be Nigerian banks, and what causes all of this is that we deposit our money, and they instantly take it and borrow other people's so that they may get interest on it. Nowadays, I understand that not all banks have their own personal money, which they use to conduct their operations, rather, the money they utilize to operate their businesses comes from their customers.

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Quote from: cakravothy on January 03, 2024, 05:44:22 PM

Because your money is used to be owed to other people. so if you have a lot of money in deposits or ordinary savings. and want to take it all, the bank will have difficulty if you immediately give all your money.
So the bank will give time to provide the money you want to take maybe sent from its head office or the person paying the debt.

The bank deposits the customer's money and lends that money to other customers, thus the bank makes a profit by managing other people's money. So if all the customers withdraw from a bank together then that bank will not be able to pay all the customers together. The bank will go bankrupt. So you can say that the bank has no money. Banks only change hands of money. And earns profit by lending business with customers money

Essential10

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Banks can run out of money for a variety of reasons, one of which is lack of liquidity. A lack of liquidity occurs when a bank does not have enough cash to meet the demands of depositors or to meet its obligations. Many cases may be due to large withdrawals, unexpected expenses or poor financial management. Other reasons for banks running out of money can include risky investment decisions, economic downturns, and financial crises. A decrease in customer deposits or a high number of bad loans can also cause a bank's lack of funds.

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Quote from: Bright0515 on January 03, 2024, 05:34:59 PM

In this recent economy we have witnessed some hardships financially and many other aspects now coming to say there is no money in the bank how possible is that can you imagine saying the river has no water? We are in the new year now huge sum of money have been signed by the government for projects but in a very short time they suddenly come out to say the country is running out of funds the country needs to borrow money from other countries the money signed in your own country where are they what is the duty of the bank in your country imagine a bank giving you the maximum amount you as a the account owner can withdraw from your own account sometimes I just feel like the bank isn't a safe place any more.

It is good that you finally realize that. Banks have never been safe. they take your money in the form of real cash. and add a digit in your account and tell you that it is your balance. but in actual that is nothing but just a digit. meanwhile, they use your cash anywhere they want. whatever they want. without your consent and without giving you any update.
and then when you go back and ask them for your own money you gave them. they start making many excuses and try their best to sop you from taking your money back.. then when you keep asking . they'll give you someone else's money while your own money is being used somewhere making more money for them.

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Quote from: 0t3p0t on January 04, 2024, 10:56:51 AM

Quote from: cakravothy on January 03, 2024, 05:44:22 PM

Because your money is used to be owed to other people. so if you have a lot of money in deposits or ordinary savings. and want to take it all, the bank will have difficulty if you immediately give all your money.
So the bank will give time to provide the money you want to take maybe sent from its head office or the person paying the debt.

This is legit because I don't know if I read that here, on the internet or with my friends but it is true that they can't provide all the money you have in the bank if you wanted it all out. Why? Because banks lend your money to other people for I think loans and other things. We are talking about millions here not just few thousands of dollars because they can provide that over the counter. I you have millions of dollars on your bank account and you want it out banks can't provide you that amount.

Not just loans but there are other things that bank has which are assets that they can't liquidate. There's a high chance that the banks has money in them but I think that giving you million of dollars straight will affect them in some sort. If you have millions on bank, I'm sure that bankers don't want to lose clients like you that's why they delay it as much as they can. I don't have a experience of cashing out super big amount on a bank to the point that I need to call them before going to them but I believe that problems like this are occurring.

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Quote from: Gozie51 on January 04, 2024, 12:19:13 AM

Banks are controlled by the government and when government want to regulate some of their financial policy, it is through the banks that they do it. So it could be a reason of such regulation, perhaps trying to control the amount of money in circulation to reduce inflation because it is an economic idealogy that if there is too much money in the economy, it could be the reason for inflation and to reduce it is to make the flow of money reduced which is not without its own effect.

Another possible reason is that government may have loan huge amount of money to some big investors through the banks. You know government is secretive and such could be going on without the public being aware, they divert the minds of the public with different stories.

Regulations have existed in in the past to ensure that banks have enough reserves to cover potential bank runs etc. Trump cut so many of these safety regulations, and rolling them back took too much time to fix everything in time, and one of these rules was about bank reserve requirements that trump got rid off and it was a huge reason for to SVB collapse for example.

And for OP: printing huge amounts of money in short time is just for crisis situations. It's an economic stimulus solution, not a solution for something like this. It's way more healthy to borrow it and pay with interest then potentially go to hyper inflation mode.

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I remember reading stories in some African countries and experiencing the situation for several days when I visited Lebanon, as the government refused to give customers their money and set limits on withdrawals in dollars at less than $500, while customers’ money exceeded $200,000, and some of them were merchants, so they were forced to either deal with the black market or Employing large numbers of young people, where each account holder is allowed to withdraw an amount of $500, and thus 20 people are equal to $10,000 until they withdraw all their money.
In general, as soon as there are financial crises like this, there are financial problems and the government must intervene quickly.

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The money in the bank is used again to make a profit by the bank, so if very rich people want to withdraw large amounts of money, they have to wait until the bank has the money. Usually, very rich people who want to withdraw their money will tell the bank to provide the amount of money they request.

But for people who want to withdraw a limited amount of money, the bank can still serve them because there are still ATMs that those people can use. But if you are dealing with very large amounts of money, the bank must immediately provide the money. This makes people unable to withdraw large amounts of money at once.

But people still trust banks and keep their money in banks. They still use banks to carry out financial transactions, even when companies use them. But that's just an estimate because international banks have the money to fulfill what the public demands.

0t3p0t

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Quote from: cakravothy on January 03, 2024, 05:44:22 PM

Because your money is used to be owed to other people. so if you have a lot of money in deposits or ordinary savings. and want to take it all, the bank will have difficulty if you immediately give all your money.
So the bank will give time to provide the money you want to take maybe sent from its head office or the person paying the debt.

This is legit because I don't know if I read that here, on the internet or with my friends but it is true that they can't provide all the money you have in the bank if you wanted it all out. Why? Because banks lend your money to other people for I think loans and other things. We are talking about millions here not just few thousands of dollars because they can provide that over the counter. I you have millions of dollars on your bank account and you want it out banks can't provide you that amount.

Mate2237

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Op there is no money in the Bank is different from a country government going into borrowing. There might be enough money in the bank but they are for the government but for private individuals and companies. Government borrowing money does not mean there is no money in the country but the specific projects they are about bro execute in the country, there is no enough money to do it so they have to borrow from external bodies.

The thing that surprised me is that how come there is no money in the bank. Where does the money entered? In my country we have experienced this situation of our of cash in the banks twice. And people are saying that politicians and rich individuals are holding the money in their custody but if they are keeping it like won't they eat? Or buy things? The matter what money would have circulating but everything is stuck.

|MINER|

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Such decline of banks is a type of economic decline. It is very frustrating that our money is not safe in the bank. But a few days ago we trusted these banks blindly. If I put money in the bank, I thought my money was safe, but the bank itself is losing trust. It is very painful and worrying. But I would say keeping money at home is not at all safe because there is a risk of life in it. Money is not more important than life. If you can't trust the bank, you can invest your savings in Bitcoin. It is safe and profitable. Although it is a long-term process, it is safe for your money.

Topic: How is it possible to say there is no money in the bank - page 7. (Read 1272 times)